1.Describe the basic social & economic goals used to evaluate economic performance.

2.Evaluate the trade-offs among economic & social goals.

•Every economic system has goals•Goals serve as benchmarks that determine if the system meets most/all of its people’s needs•The U.S. has 7 major economic & social goals:

People want to choose own occupations, employers, uses for their $

Businesses want to choose where & how to produce

oFactors of production must be used wiselyoWaste yields less goods & services = fewer wants & needs satisfied

We have a strong sense of economic fairness, justice & impartiality

No discrimination in employment, no false advertising, laws protecting consumers

We want protection in case of:Illness – health insuranceLayoffs – unemployment compensation

Retirement – Social Security

•Economic system should provide as many jobs as possible

•No job = people can’t support themselves/family, nor can they produce goods & services for others

•Desirable unemployment rate = 4% - 5%

Stable prices help avoid inflation (a rise in the general level of prices)

Stability makes budgeting easier & adds a degree of certainty about the future

People can have more goods & services

Our population is likely to rise; growth is necessary to meet everyone’s needs

•Most people agree these 7 goals are necessary for our system to work; what people may disagree on is their ideas about how to reach them

•Our economic system is flexible enough to allow choices, accommodate compromises & satisfy most Americans most of the time